By Ogunbayi Beedee Adeyemi October 30, 2025
adeyemi@ddnewsonline.com
President Bola Ahmed Tinubu has greenlit a 15% import duty on petroleum products, including petrol (PMS) and diesel (AGO), signaling an imminent surge in pump prices amid Nigeria’s fragile economic recovery and persistent inflation woes.
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The directive, embedded in a revised executive order signed Tuesday and effective November 1, 2025, reverses a prior waiver that exempted fuel imports from duties since the 2023 subsidy removal. Finance Minister Wale Edun confirmed the policy shift during a briefing at the Presidential Villa, framing it as a “strategic revenue measure” to bolster federal coffers by an estimated ₦1.2 trillion annually.
“Mr. President has approved this to align with global trade norms and fund critical infrastructure,” Edun stated, adding that the duty capped at 15% ad valorem will apply to all imported refined products via the Nigeria Customs Service (NCS). Diesel, previously zero-rated under a 2024 concession for haulage firms, faces the full levy, potentially adding ₦150-₦200 per litre at pumps.
Marketers warn of immediate ripple effects. The Nigerian National Petroleum Company Limited (NNPCL), the sole importer since Dangote Refinery’s phased rollout, projects landing costs rising from ₦580 to ₦720 per litre for PMS. Independent Petroleum Marketers Association of Nigeria (IPMAN) National President Abubakar Maigandi told journalists: “Expect ₦800-₦850 in Lagos, higher in remote areas. Transporters will pass on diesel hikes, inflating food and goods.”
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The move comes despite Tinubu’s October 9 pledge for “no further increases” post-subsidy era, drawing parallels to the May 2023 deregulation that spiked prices from ₦185 to ₦617. Analysts link it to fiscal pressures: Nigeria’s 2025 budget deficit stands at ₦9.1 trillion, with oil revenues hampered by OPEC quotas and theft.
The Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) condemned the duty as “economic sabotage,” vowing nationwide protests if reversed. NLC President Joe Ajaero fumed: “Tinubu promised relief, not more burdens on suffering masses earning ₦70,000 minimum wage.” Organized labour has scheduled an emergency NEC meeting for Thursday, hinting at strike action.
Opposition PDP labeled it “Tinubu’s hidden tax on the poor,” accusing APC the administration of “prioritizing revenue over lives.” Even APC allies expressed unease: A northern governor anonymously told DDNewsOnline, “This could fuel unrest in the North, where banditry already disrupts farming.”
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Edun defended the policy as “temporary,” with proceeds earmarked for palliatives: ₦500 billion for mass transit buses, CNG conversions, and subsidies on agricultural inputs. “We’re cushioning impacts free CNG kits for 1 million vehicles by December,” he assured.
The Dangote Refinery, now supplying 350,000 barrels daily, could mitigate hikes if scaled to full 650,000 bpd capacity. Aliko Dangote welcomed the duty: “It levels the playing field against smugglers and protects local refining.” However, NNPC’s import monopoly persists until Q1 2026, per agreements.
Economists forecast inflation climbing to 36% by year-end, eroding purchasing power. Bismarck Rewane of Financial Derivatives Company warned: “Transport fares up 30%, food prices 20% this reverses subsidy gains.” SMEs, reliant on diesel generators amid grid failures, face closure threats.
Echoing Emir Sanusi II’s recent sycophancy critique, analysts urge Tinubu to heed warnings: “Approve duties, but pair with wage hikes and power reforms,” said Dr. Ayo Teriba.
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As depots adjust templates tonight, Nigerians brace for queues and black markets. The presidency appeals for patience: “Short-term pain for long-term gain.” But with elections looming, this fuel fire could ignite broader discontent.
DDNewsOnline, Abuja
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